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tv   MONEY With Melissa Francis  FOX Business  November 22, 2012 5:00pm-6:00pm EST

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melissa: i'm melissa francis, and here is what is "money" tonight. president obama descends upon new york just as fema is running out of money. the agency says, it will burn through all of its cast by the end of november. are we looking at another major taxpayer bailout? plus, the president has been oil drilling off the atlantic coast of virginia the -- but viejo says no way. outplay to sidestep the ban and tap huge reserves. i will speak to the official leading the charge. a group of millionaires sits down with top white house officials begging for their taxes to go up.
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one of them is here to explain it to me. even when they say it is not, it is always about "money." ♪ all right. to our top story, a possible bailout for fema, the federal emergency management agency says it only has $850 million left in the bank. and they expect to burn through that by the end of this month. meanwhile, we are looking at losses of 6-$12 billion. this all coming as president obama visits damage here in new york to see the recovery efforts. with me now, david williams, president of the taxpayer protection alliance. thank you for coming and michele what do you make of all this? what happens if they run out of money? >> well, don't worry.
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people will be helped. what will happen is congress will step in to make sure that they get money. then what happens after that, what we really don't know, how they pay that money back to the federal government because it is only borrowing the money. that is what they did to borrow it up to 20 billion, both through 18 billion of that. they have about 3 billion last. but that is going to go so quickly in new york and new jersey. we are really running up to a deadline here. melissa: i wonder, and i hear them say they will run of money. does it make a difference? it's all your money and my money and our audiences money anyway. what difference does it make if it is coming from congress or fema? it must matter. >> well, it does. if you look at the deficit, the debt, it all matters. and what they are doing, it's almost like a microcosm of what the federal government does. it prints it, goes into more deficit spending. that is what fema is doing.
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they don't have the money and they will be able to pay back the money a already zero. it is all really the same. congress needs to address this. we cannot keep on doing this, keep on bailing out fema. everything will be fine. it. melissa: we don't want to leave people who need help. are they out of money because their and our people in disaster situations? are they just bad at managing it? >> two reasons, and you mentioned them both. the first is that people build houses on flood prone areas, beaches, next to reverse. they only pay a couple hundred dollars a year for flood insurance. the taxpayer bells them out of literally and figuratively out of these floods because let's say $300 a year. they did bailed out to the tune of tens of thousands of dollars by the federal government when a disaster strikes. if you kind of sound -- well,
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let's look at how we do this. no, we are taxpayers. we should look at this and have a critical eye on this. melissa: when an area -- you don't want to not help people that are in trouble, but at the same time, does it make sense to encourage people to go back and rebuild homes? places that have been storm ravaged, earthquake ravaged in the past. maybe you want to compensate the people that are hurting right now, but you don't want to ensure future property on this land. >> we know where the flood zones arm. this is not a big mystery. beaches, rivers, these are flood prone areas. to rebuild, but also, if you are going to rebuild you can't pay $300 a year in flood insurance. you have to pay thousands of dollars because this is what the cost is. there has to be some sort of market forced to say that $300 for flood insurance, there has to be more common sense. melissa: is that reasonable? if we go back and say the
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taxpayer, we are not going to ensure you to go back and build on the hills of malibu where you can grass down to the beach or build on fault lines in california, near flood areas or hurricane areas in florida. we will not ensure you, but you can build there if you want and added the uninsured are getting expensive private assurance. that will never happen. >> it has to be realistic. we have to do this. i will guarantee you that if we do that people will think twice. wait a second. i'm not going to get this big federal handout. maybe i will build on the beach or near a river. i think that people will think twice. it's not going to stop. not going to stop stupid decisions, but i think people will think twice about it. that is probably the first. melissa: not talking about the people who are devastated. we're talking about this modest plan going forward so that we
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avoid this kind of destruction and taxpayer costs in the future. thank you for coming on. interesting discussion. the devastation continues to unfold in the wake of the storm. our very own elizabeth macdonald joins me with the untold story. this is the irreplaceable cost of a hurricane. >> that's right. this is usually a beach area. and it's it's east and breezy point and just west of rock away. what we are looking at right now is a growing land fill. a heartbreaking and shocking state -- site. the debris from 11 towns devastated by hurricane sandy. it's not just the neighborhoods. its entire business districts in the gap in this temporary landfill that grew up out of nowhere, grew out of the last three weeks. one-and-a-half miles long. it's about the weight of a u.s. space station, and it's bigger than the weight of the empire state building. what we're looking at right now,
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around the clock 1800 garbage trucks have been moving in and out, bringing in debris. they have been going full tilt 247, even before the hurricane hit. well real looking at, they are using sand that was on the beach box that ended up from the flooding, using it as what are called berms to stop any hazardous waste from the losing end to the environment and the area, said that is the he -- the sand wall. they just switched on the lights they are looking at dump trucks and 18 wheeler's coming into my bringing in this debris. the president did you fly over when we were here this morning. he did give a shout out to the sanitation workers. they are the first responders that basically remove the debris. what we are hearing is the new york parks department gracefully open this up because if they did not build this landfill here, the rebuilt would have been even slower. right in the area, heartbreaking
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photo albums, toys from bicycles, car seats. i just picked up some of those around my area. it's heartbreaking site for the people who are affected by this. the other story that has gone unnoticed, the reason why the flyers were really bad in breezy point and rockaway is because the debris was in the way. the sanitation workers, as soon as they got in helped. so i'm going to be giving it back to you. we will be going the route the evening. it's a heck of an operation, and it won't end until the rebuilding begins. by the way, three stories we're looking at, of debris right now. it will get bigger as the power gets switched back on and they can do even more. melissa: so much work to do. so heartbreaking. thank you for that report. superstar and sandy will cost
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billions of dollars weeks after the storm. local governments are still fighting for federal funds to help. the money will might be running dry. the leader of one of these communities, new york city councilman from coney island. thank you for joining us on the phone. we were just reporting on in hearing about the fact that fema is running out of money. what does that mean to you? >> it's a big problem here in coney island and see haven and brighton beach. holmes had been washed away. people have been displaced. zima is going to have to decide what they have to do. congress is going to have to come together and allocate more money. in new york city i am also the finance chairman of the new york city council, and just this week we allocated $500 million because 300 million for health and hospital corporation the 200 million for school
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construction authority so we can rebuild schools and hospitals that have been displaced, bellevue and coney island. melissa: do you think it makes sense to rebuild in the same spot? that was the theme of this segment we did before you. federal tax dollars are going to have to come in and replace what has been devastated. in the future the you think that same kind of insurance, federal insurance that encourages people to build in these spots make sense. >> in many of these buildings we have no choice but to rebuild. "we have to do is build smarter, wiser, and we cannot -- we have to watch how high we build on the water. we may want to use steel walls instead of concrete walls and. we have to really build sand dunes so we can protect harbor citizens of new york city from this ever happening again. melissa: how devastating is this to your community? we are looking at the pictures. it is staggering, talking about making sound financial decisions
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but at he same time homes that are absolutely destroyed. >> said without heat. the electricity just got turned on. meals. today we served about another 5,000 meals. people are still coming because there is no supermarket open. people have no way to get cleaning detergent, clorox bleach, sponges, they have no vertigo. we are -- government is supplying everything. i have to say something. fresh direct, fair way, and many other supermarkets have donated so much. walgreens. just been so charitable. melissa: the cleanup is overwhelming. melissa: coming up, an offshore
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drilling ban. one state official has a plan to sidestep president obama. he is here to explain. plus, millionaires are the latest group to be hosted by the white house and talk about the fiscal cliff. the day after day. lawmakers hike their taxes. one of them is here to join me and explain that. more "money" coming up next. can i help you? i heard you guys can ship ground for less than the ups store. that's right. i've learned the only way to get a holiday deal is to camp out. you know we've been open all night. is this a trick to get my spot? [ male announcer ] break from the holiday stress. save on ground shipping at fedex office.
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melissa: the days are flying by. have you noticed that there is no solution in sight for the fiscal cliff? i am getting nervous here. a sticking point of what taxpayers ought to pay. the patriotic millionaires have questions about that. raising taxes won't slow down business growth. in fact, they went to the white house and asks whether taxes to go up. david is one of those offering to pay more. thank you so much for coming on the show. why do you want to pay more taxes? >> well, i don't want to pay
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more taxes. i don't think anybody wants here. i'm part of a group called the patriotic millionaires and we are all willing to pay more taxes. so it's clear that all of us, the whole country is in a position where all of us individuals, the working people, the wealthy people, corporations, all of us together have to pay for all of the spending that we have done over the last 12 years. >> why don't we cut spending? why don't we start with something that senator coburn announced today. there is so much that can be saved by cutting nondefense spending, things like a smartphone application. it these are the things we are spending money on. they cut that we can make. >> so we have to do new cuts and paperwork. we have to pay for all of the spending we have done for the last 12 years.
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and we are kind of all in this together. so i don't think that, you know, i have spent the last two days talking to both sides of the senate. i have spent time talking to representatives in the house and white house. the most important thing we need to do in paying for this is to make sure that we don't push ourselves back into a recession. >> i agree with you completely. >> solar group, the page you're millionaires, we understand that our tax rates are low. they are historically low. much lower than the middle class. we are willing to take some pain on us. and also help pay for part of this. melissa: you are willing to put
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more money on the table to pay higher taxes? you think the other side is really willing to make some serious deep cuts? you have been talking to both sides of the aisle, as you have said, what have you heard from democrats? what have they said to you that they are willing to put on the table? >> i have been talking to democrats and republicans. i am an independent from california. both sides are kind of in the same place. both sides say and recognize that we need to raise the revenue and we need to have cuts. i think both sides come from different places. we need cuts, but we also have to accept tax raises and the other side says that we need more revenue. >> that's not what it sounds like from the outside.
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we hear a very hard-line from both sides. you hear the president get up and he says that we have to mandate. i heard from voters and they want the wealthy to pay more. and both sides seem to be willing to die on this notion. but you are saying something different. he said he talked to them in private and there was a compromise in sight. which was encouraging for the rest of it. i feel like velma and louise. we are going to go flying off this cliff with no one to help us make a stable decision. >> i think both sides are need to be raised on millionaires. i think what the president is saying is that what we need to
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do is make sure that we don't raise tax rates and that we actually continue to extend the tax cuts for the middle class low $250,000. >> david, thank you for coming on, we appreciate your point of view. >> still really worried, right? here is the question of the day. like us on facebook.com and follow me on twitter at melissa francis. coming up, israel's battle with hamas is escalating. what could this mean for energy supplies in the middle east? we have the latest and it's getting even scarier. can you ever have too much money for 30 some years at many different park service units across the united states. the only time i've ever had a break is when i was on maternity leave. i have retired from doing this one thing that i loved.
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now, i'm going to be able to have the time to explore something different. it's like another chapter. a body at rest tends to stay at rest... while a body in motion tends to stay in motion. staying active can actually ease arthritis sympto. but if you have arthritis, staying active can be difficult. prescription celebrex can help relieve arthritis pain so your body can stay in motion. because just one 200mg celebrex a day can provide 24 hour relief for many with arthritis pain and inflammation. plus, in clinical studies, celebrex is proven to improve daily physical function so moving is easier. celebrex can be taken with or without food. and it's not a narcotic. you and your doctor should balance the benets with theisks. all prescription nsaids, like cebrex, ibuprofen, naproxen, and meloxicam have the same cardiovascular warning.
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[ engine revs ] ♪ ♪ [ male announcer ] the mercedes-benz winter event is back, with the perfect vehicle that's just right for you, no matter which list you're on. [ santa ] ho, ho, ho, ho! [ male announcer ] lease a 2013 c250 for $349 a month at your local mercedes-benz dealer. melissa: oil and gas off the coast of virginia and the state
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is willing to buy have to get added. they want to restore energy expiration that was canceled after the 2010 bp oil spill. the white house says it won't come for another five years and there is legislation in congress to open up virginia's waters to drilling. the who is going to win this one? i'm not sure. with me now is the secretary of natural resources who has been leading the fight to open up the federal waters of virginia for drilling. thank you for coming on the show. >> thank you for having me. melissa: how are you going to win this one? >> the best part of that it is that it is a bipartisan effort. we have had great support with democrats and republicans in congress. we think it is a reasonable and bipartisan effort now that the election is over. melissa: so you think he's your only go here? >> well, yes, we think that his
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efforts could make a huge difference. we were awarded this back in march of 2010. president obama awarded this to virginia, and unfortunately after the vp bill in april, our sale was initially postponed. then it was eventually canceled. what we are trying to do is reinstate the sale. melissa: how much oil are we talking about here, what with the estimates? what would it mean for you? >> well, the estimates, which are actually 30 years old, they were done 30 years ago. estimating 3.3 billion barrels of oil and over 31 trillion cubic feet of gas off of virginia. typically, these estimates are overproduce when they are actually developed. we think there is a substantial amount out there, and according to estimates, 31,000 jobs could
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be created by exploring that area. we think it's good for the economy. it's good for tax revenue. it is something that the president could do. >> i have followed this industry for a long time. these estimates are very conservative, there is always a lot more out there than what they are saying. but at the same time, the president has been a big file of drilling on public land. he blocked the keystone pipeline and that would've meant a lot of jobs and oil and lower gas prices for everyone. i feel that he won't be in your corner on this one. what are you going to do about that? what is your most persuasive argument, and what is your plan if he stands in the way? >> there is a five-year plan in place. the interior department has issued that there are thousands of offshore wells being
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developed right now in the goal. and in lockstep. so this is not an unusual activity. the outer continental shelf is there to help us produce energy and there is huge demand for energy in the future. the u.s., the international agency just produced a report this week that said the u.s. is poised to become a major supplier of oil and gas. all around, the arguments are in favor of developing this resource. >> at the same time, this is a really tough day to be talking about this. the bp disaster is back in the news. we have seen the video all over. they have come to a settlement of billions of dollars people always pointed back to the disaster and what it did to the surrounding environment. there it is right there. they point to this and say this is why you can't go drill offshore. what do you say that?
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>> deepwater occident was horrible. but huge gains have been put into place since the disaster, both at the federal level as well as with the industry. the technology, the safety technology has improved and we think again that there are thousands of these wells running today. melissa: what companies have contacted you about drilling? >> we have had a number of companies indicate interest, but i cannot say who. >> from a practical point of view, how do you keep that explosion from happening in your neck of the woods? >> again, the industry itself has developed a whole new company that is they are and are designed to increase the amount of safety on all of these rigs.
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so advances in technology -- do you trust the industry? >> i do. no company wants that to happen to them. it is definitely something that we can do. we will follow this very closely. thank you for coming on the shelves be one time for the fuel gate report. the company will pay 4.5 william dollars in penalties for this bill, including 1.26 billion in criminal fines to settle charges with the justice department. they could fall about 1%, and natural gas prices slipped off a one-year high. a smaller than expected high sent them down about 1.5%. what's next, shockwaves across the middle east between israeli
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and hamas forces intensify. we have the details on how far they could go and i just can't take it anymore. no one is willing to give the ability to get a deal on the fiscal cliff. so we have come up with their own money solutions. piles and piles of money and solutions are coming up next.
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melissa: israel and hamas launching missiles back and forth. the ongoing confrontation between the two killed hamas as top's top military commander. the violence is spreading. reports in tel aviv say that tel
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aviv has been hit with rockets. they are now dangerously close and we need to be concerned about our energy supply. as israel's ally, what does this mean for our national security? mike barrett joins me to answer all of these questions that we have related to you right there. first of all, what do you think of israel's attack on hamas and the military leader? what you make of all this? >> one of the big things is that are tediously, we have to make sure that people are still serious and strong and not weakened by the fact that obama was reelected. there is an awful lot of reports on the press and people on both sides can read those articles and there was a lot of discussion about how a second term obama administration could behave and how that would open it up for israel to feel like they needed to strike quickly right after the election. so i think that that is probably part of what it is. the other thing is that the israelis have a track record
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when they find someone they are looking for, they take them out. melissa: where do we go from here? it seems like it has taken the whole thing up a notch. >> and hats. it has gone up several notches. i wasn't too concerned about it, but i figured this would be a classic flare up. over the course of the day, it got more significant, larger rockets and used in the past, the first time in 20 years, air raid sirens were heard in a major city having to take shelter. this is different than the usual rockets. those are unguided, they are fairly small. now you are talking about serious weaponry and it will strike back hard against that. >> it looks like some corner has been turned towards the more
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violent. how does this affect our security. why should we be focused on this? >> the first thing is that people tend not to differentiate between americans. we know in the u.s. it's ridiculous. i mean, these kind of ridiculous things, it is pretty amazing when you look at what the culture believes about the u.s. and israel and how we are in some plot to take over the world. melissa: so you think this puts us at risk or signifies that we are more at risk reman. >> certainly western interests are going to be at risk. what we will see is our diplomatic locations that will be at risk, americans in travel, every time there is a framework like this, we have a place like egypt, we see that happen.
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as individuals and citizens traveling abroad, we ha individs traveling abroad, we have to increase our security. also, the oil supply. >> we are not just talking about oil, we are talking about other things as well. >> that is exactly the point. egypt is critical to this. there is a reason that we spent decades and worked so hard to create a campaign back in 1979. and then we spent billions of dollars each and every year giving money to the israelis and egyptians to keep them in place. because egypt is strategic culturally throughout the region and also physically. the suez canal is a major artery for trade and we also have a lot of pipelines and other ways that oil moves around in that region.
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if israel decides to do this, you will have a very different type of map in the middle east. melissa: thank you so much for joining us. sit down and talk a lot. after hearing nothing but chatter from lawmakers on how to deal with the fiscal cliff, money has taken matters into our own hands and we will go through these solutions and solve this problem, at least part of it with one of my favorite economist. at the end of the day, it is all about solutions. having you ship my gifts couldn't be easier.
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melissa: all right, forget congress. fixing the fiscal cliff fiasco. here we have it under control. if no one else is going to step up with a solution, we will get it started with our own answers about where to start with spending cuts. joining me to go through the ideas is our chief economist. brian, thank you for coming back on the show. >> thank you for having made. melissa: i am so sick of people coming on and saying what the other guy is going to give and
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not have a solution and i said, you know what, let's roll up our sleeves and get to work and come up with some solutions. we are talking about raising taxes and we haven't really drill down on the possible spending cuts out there. for example, senator coburn showing $67.9 million. it can be saved over the next 10 years by cutting nondefense spending. among those things. it was a huge report, more than 400 pages filled with all kinds of stuff. some examples were a smart phone half that alerts users when to take their coffee break. i feel like we are things we could be cutting. what do you think? >> the federal government is spending $3.6 trillion. if you can't find waste and abuse than a trillion dollars to cut that would not have a major impact on the economy, i would be shocked. so this is just an example of it. i don't spend my day combing through the budget looking for
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those kinds of things. but we know that they exist. you know, that is one of the key government spending, federal spending, well over 22 or 23% of gdp right now. this is a very damaging thing. it is weighing down on the economy and the reason why we are not growing. i am with you. three it's not necessarily a revenue problem. it's a spending problem. if your home budget is out of control, the first thing you do is tighten your belt and then you go out and get an extra job. but the first thing you do is tighten your belt. i couldn't believe this one. we could be saving at least $100 million, the number is actually bigger, because professional sports teams are actually not profit. did you know that? the national hockey league, they are exempt from federal income taxes. this is one of those things.
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i was very shocked by this. we are talking about raising taxes on regular folks and why don't we start with these guys. >> yes, there are two points that i would make here. the first is if you add up all the lobbyists in washington dc and add all of their revenue together, they would be combine one of the largest corporations in america. they get paid to find and carve out the special tax breaks, subsidies, all kinds of special things in the budget. that is what they are there for. it is a huge industry. they don't want to go away. if you want to argue that corporations are strong and they run america, which is what we hear from a lot of people out there. the lobbyists are a massive entity. >> they are. before we run out of time, i
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love the post office, but we could save billions if we stop saturday delivery. it could be $5.2 billion by 2020. we are also spending money on research that i'm not sure we need to do. $547,430, we are financing the research of advancing robots for icons. i think we have a picture of them there. i know it's only a drop in the bucket, but i feel like before any of us go ahead and pay more taxes than anyone pays another dollar in tax, maybe we should look at this. i feel like i don't need tax dollars making dancing robots. >> you know, from an economic perspective, the united states has never balance this budget.
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we are way over that. there is no tax system that we have ever devised in all of our history, 90% tax rates, 70%, 28, it doesn't matter, no tax system has ever had this ability to raise that much revenue. we cannot balance the budget when we spend. clearly, when you're spending $3.6 trillion, there is going to be waste and fraud and abuse. we need to carve out every one of these things that you pointed to. >> like we would all do at our homes. brian, you are the voice of reason, please come back and help me fix this problem again. we are going to do this because no one else's. thank you. >> thank you, i'm with you. melissa: when you are on a book tour, you have to be ready to do just about anything, including eating bugs. so did i chow down or went out?
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there is a lot of controversy about this. the answer is coming up next and you can never have too much money for too many fried grasshoppers.  4g lte is the fastest.
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so, which supeast 4g lte service would yochoose, based on this chart ? don't rush into it, i'm not looking for the fastest answer. obviously verizon. okay, i have a different chart. going that way, does that make a difference ? look at verizon. it's so much more than the other ones. so what if we just changed the form altogether ? isn't that the exact same thing ? it's pretty clear. still sticking witherizon. verizon. more 4g lte coverage than all other networks combined.
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melissa: all all right, it's tie
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for spare change. today we have david asman and sandy cohen. first up, i went to promote my book. have i mentioned that? have you not thought it? well, what else i ended up doing, well, you have to hear this. i stuck around for a bookshelf and i ate a bug. this is how desperate i am to sell this book. >> that is a fried grasshopper. >> he ate the whole entire thing. i about died. so now you say this like you are a big bug eater. >> it's a delicacy.
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they eat them all the time in spanish. it looked like a shish kebab. >> we still love you even though you eat a grasshoppers. >> it's great protean. they are tasty and crunchy. >> they taste horrible. >> you're probably healthier for matt for meeting matt mcdonald mcdonald to are you with me? [talking over each other] [talking over each other] >> it is so adventuresome. good for you for going for it. >> when they invite you on, you have to do whatever you need to do. i have to prove to my publisher that i'm doing the right thing. they also have coleslaw mix with cockroaches. >> there was a centipede that was very annoying that they ate. and it was really awful.
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>> i am not talking about it. anyway, macy's is getting a lot of pressure to dump donald trumps clothing line. there is even a petitio there is even a petition that has 50,000 signatures. macy said it is not dumping donald trump and the company's connection with him does not count as an endorsement of his belief. what do you guys think amax. >> all new yorkers want to live like him, but they feel guilty about it. >> if he wants to tweak whatever he believes, good for him and good for macy's. because they are the client. they supported the first amendment. let him say what he wants to
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stay. >> that is what is so beautiful about america. if you don't agree ith what he has to say, don't buy his products. >> you can expect macy's to take it away from everyone else. if you're mad at macy's, get mad at them and then eventually macy's, if enough people don't show up, they can be caught in a bind. >> everybody wants to be trump, everyone wants to live like him. >> it is big and it will sell. >> they make money. that's right. at the end of the day, it is all about "money." a brooklyn pot dealer is donating half of his proceeds to victims in new york city. that is $700. so far, the dealer has bought 51 blankets. one evening?
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>> he is giving the money to those in need. >> this story comes from the huffington post. these guys are scum and they live off of the weakness of other people. they will say anything. i don't believe it. >> i would like to end on a happy note. all right. israel has bombs missing weapons now. you step inside a little booth and you get hit by a gentle blast of air. the mice are on duty and if you are clearer, a green light appears. but if there's something suspicious, they gather something that raises an alarm. >> they are tradable. their sense of smell is very

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